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Rustem Khamitov took part in VFD Council meeting on combating "shadow" economy

On March 28, in Orenburg, the Head of Bashkortostan Rustem Khamitov took part in a meeting of the Council under the Plenipotentiary Envoy of the President of the Russian Federation to the Volga Federal District (VFD) dedicated to combating criminal and shadow economy in the Volga region.

The meeting was held by the Plenipotentiary Envoy of the President of Russia to the Volga Federal District Mikhail Babich. It was attended by the State Secretary — Deputy Minister of Industry and Trade of the Russian Federation Viktor Yevtukhov, Deputy Minister of Labour and Social Protection RF Alexey Cherkasov, heads of regions, representatives of public authorities of various levels and public organizations.

Opening the meeting of the Council, Mikhail Babich noted that only in 2016 the volume of investments in fixed assets amounted to more than 2.4 trillion rubles, tax and non-tax revenues of the consolidated budgets of the Volga Federal District made more than 1.2 trillion rubles.

"At the same time, there are internal risks and processes that slow down the socio-economic development of the regions, including, inter alia, penetration of crime into vital areas of our society, as well as activities of economic entities that develop outside governmental accounting and control", the Envoy underlined.

Currently, experts note that one of the problems that significantly hinders the study of the "shadow" economy, is lack of official statistical information, as well as methods for its calculation.

Mikhail Babich named measures aimed at reducing the "shadow" sector of the economy: formation and improvement of the regional regulatory framework, development and implementation of appropriate targeted programs and plans, organization of work of collegiate bodies and commissions, measures taken to identify crimes and economic offenses.

Speaking about the "shadow" business, the Plenipotentiary Envoy drew attention to issues related to non-fulfillment of duties on implementation of various types of payments to the state, especially taxes.

"On the one hand, in 2016, there is an increase of 7.5 percent of taxes and fees collected to budgets of all levels from regional taxpayers", said Mikhail Babich. "However, along with this there is a high level of tax offenses in the regions of the district".

In addition, Mikhail Babich outlined the need to solve an issue of reducing the number of informally employed people, counteract the illegal turnover of industrial products, ethyl alcohol, alcohol and alcohol-containing liquids.

The Envoy emphasized that adequate measures were required to protect against withdrawal of budget funds into the "shadow" circulation, including while performing state and municipal purchases.

Mikhail Babich urged the participants of the Council to discuss the most characteristic prerequisites for forming the "shadow" sector of the economy from the position of business and to develop concerted measures to neutralize them.

As a result of the meeting, specific proposals and recommendations were drawn up for submitting to the State Duma and the Government of Russia, federal ministries and departments, as well as regional authorities, aimed at increasing the effectiveness of cooperation in combating the criminal and shadow economy.